Jilin in northeast China is offering married couples bank loans of up to 200,000 yuan ($31,400) if they have kids, joining other provinces in the roll-out of financial incentives to overcome a declining population.
Certain small businesses set up by couples with two or three children will also enjoy exemptions and cuts in value-added taxes, reports Reuters
…Jilin also said it will also extend the duration of paid maternity leave to 180 days from 98 days
For context, the north-east province’s population fell 10.3% in 2020 compared with 2010. And Jilin slumped 12.7%. These are massive numbers, certainly due also to internal migration.
Reward beats punishment. So while everyone would hate being taxed for not having kids, rewarding those who do is commonplace. In the US, for example, there are varies “tax credits”.
Incentives also scale well. You can keep increasing them until you get the desired result. The deep concern is whether no amount is enough for many people.